NFIU Gets Commendation For Leadership Role In Anti-Money Laundering
By: Elizabeth Christopher
The Nigerian Financial Intelligence Unit (NFIU) has been commended for its leadership role in the Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) campaign across Africa.
The senior Officer, Egmont Centre of FIU Excellence &Leadership, (ECOFEL), Mr Lennart Peek gave the commendation at a session of the FIU Suspension Powers Workshop for West, Central Africa and Eastern and Southern Africa Region.
The workshop organised by the Egmont Centre of FIU Excellence &Leadership (ECOFEL) saw Financial intelligence experts from across Africa gather in Abuja for a two day workshop focused on the powers of Financial Intelligence Units, (FIUs), to suspend suspicious transactions.
Mr Lennart Peek, said Nigeria continues to play a leadership role in sharing experiences and putting in place new strategy in combating illicit financial flows and terrorism financing.
“So the NFIU is a real leader in the region. So, they are bringing FIUs together, like in the workshop we have today, to inform everyone about the FIU suspension powers. So, we are grateful for Nigeria for doing that. It’s still a lot of work to do. So, we are sharing also best practices today to inform the FIUs in the room how they can improve their system”
The Director, Nigeria Financial Intelligence Unit NFIU Hajiya Hafsat Bakari while declaring the workshop open, explained that there’s need for FIUs to develop strategies that will effectively stop illicit financial flows .
“In Nigeria, the Money Laundering (Prevention and Prohibition) Act 2022, provides the NFIU with the powers to suspend transactions for a limited period. Specifically, Section 7(6) of the Act allows the NFIU to issue a stop order directing any financial institutions or designated non-financial businesses or professions halting transactions for a period of 72 hours where the Unit suspects that the funds are linked to an illegal act.
The specification of a 72-hour window is particularly key as it allows either the FIU or a relevant law enforcement agency to secure an order of the Federal High Court restraining the funds believed to be suspicious.
This in essence allows enough time for a thorough investigation without the risk of the funds or assets being dissipated. In the context of the modern, technology-enabled financial services industry, where funds are moved at the touch of a button, it is important that FIUs have these disruptive capabilities in order to ensure that criminal funds can be effectively frozen and seized”
She said that reducing the ability of fraudsters and other criminals to use their illicit proceeds reduces the incentives to engage in these crimes.
“One of the key successes for the NFIU has been our ability to deploy these stop orders in the framework of our international cooperation via the Egmont Group to freeze and return funds that are linked to fraud, and in particular business email compromise’
Bakari disclosed that the NFIU, has established clear protocols and procedures for the use of stop orders.
“There must be a clearly demonstrated high level of risk that the funds are likely to be dissipated and/or that the suspicion of criminal linkages are established to a very high level of certainty. Beyond these, we have also established other controls which ensure that no single individual can initiate and authorise a stop order and through the use of automation we have effective audit trails in place”
Discussions at the workshop will address the balance between preventing crime and safeguarding legitimate transactions, with a shared goal of reducing the incentives for financial crimes and ensuring that FIUs remain effective in the evolving digital financial landscape.
Key among the discussions is the role of Financial Intelligence Units FIUs in using stop orders to intercept funds linked to crimes such as money laundering and terrorism financing.
Olusola Akintonde
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